- Higher US yields sent the metal down sharply and boosted the DXY.
- Gold tests Tuesday’s lows, downward pressure increases.
- Gold prices remain depressed, looking at the $ 1,700 level.
The oro it fell to $ 1,701 and reached the lowest level since June. It then bounced higher to $ 1,710, but remains under pressure amid soaring US yields that pushed the dollar up.
The DXY rebounded from 90.60 and rose above 91.00. The dollar also jumped against emerging market currencies. Stock indices on Wall Street failed to sustain gains and are now mostly lower. The Nasdaq is down 12.40% and the Dow Jones is up just 0.09%. The VIX rose to the highest level in three days.
Silver and gold fell during the last hours. XAU / USD is testing levels below $ 26.00, while gold pushes towards $ 1,700. The key drivers again are US yields. The decade is approaching 1.50%, up more than 7% on Wednesday. Most of the US economic data was ignored.
A break below $ 1,700 could increase the bearish bias. The next medium-term support emerges around $ 1,675. On the upside, a recovery above $ 1,720 would ease the downside.